Report Sees Growth in Indian Animation Business

NEW DELHI: The Indian animation industry will grow at a compound annual growth rate of 22 percent to reach $1 billion in 2012, according to a report from the NASSCOM trade body in conjunction with Ernst & Young.

Key drivers in the Indian animation segment will be entertainment and educational fare, as well as custom content development and multimedia/web design. The market conditions that have enabled the growth in this business have included international companies co-producing with Indian outfits and the growth of original IP creation for the local market. The Indian gaming segment, meanwhile, will experience a 53-percent CAGR to reach $830 million by 2012, led by online games, MMORPG, mobile titles and more.

Farokh Balsara, partner and national leader for the Media & Entertainment Practice at Ernst & Young in India, said: “India’s pursuit to establish itself in the global animation and gaming arena is facilitated by quality and lower cost advantage, large scale availability of manpower along with cultural and English-language synergies. We believe that this combined with growing consumer demand from the domestic market would provide the required boost for the industry in India."